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Daily Financial Market News

Tue, 23 Jan 2018 16:08:00 GMT

AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap

AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap Search DailyFX Home Rates Charts News Market News Real-Time News Daily Briefings Forecast Market Alerts DailyFX Authors Articles Market News Headlines Traders Urged to Respond to Proposed European Rule Changes Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting AUD/USD Rally Approaching Initial Resistance Targets Technical Analysis Analysis Technical Analyst Picks Support & Resistance Daily Technical Reports Pivot Points Sentiment Articles Algorithmic Trading Technical Analysis Headlines FTSE Technical Outlook – Consolidation Period Would Do Some Good Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon As Dollar Weakness Presists, Yen May Rally Calendars Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar Forex Economic Calendar Time Event Actual Forecast Rates Charts Education Education Beginner Intermediate Advanced Expert Free Trading Guides DAILYFX PLUS × Get the best parts of DailyFX.com in the new DailyFX App Download × Join Us For Our Free Webinars Get daily market analysis from our in-house experts Choose from more than 25 webinars each week Put your questions to our experts in real-time Q&As Register now Want to hold off on improving your trading? Click here to dismiss. × Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: The basics of forex trading and how to develop your startegy Foundational knowledge to help you develop an edge in the market What's ahead for major FX pairs, Gold, Oil and more Download a Free Guide Want to hold off on improving your trading? Click here to dismiss. EUR/USD Low High View More Note: Low and High figures are for the trading day. News Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting USD & JPY Get Haven Bids as Trump Protectionism Returns EUR/USD Boosted as German Economic Sentiment Soars GBP/USD Low High View More Note: Low and High figures are for the trading day. News Investor Sentiment Remains Buoyant as US Government Shutdown Ends USD & JPY Get Haven Bids as Trump Protectionism Returns A Weekly Technical Perspective on GBP/USD, USD/CAD, USD/CHF USD/JPY Low High View More Note: Low and High figures are for the trading day. News USD/JPY Elliott Wave Analysis Points Towards 107 Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon Japanese Yen Shrugs at Strong Local Data After Dovish BOJ Gold Low High View More Note: Low and High figures are for the trading day. News Trading Outlook for Gold & Silver, Crude Oil, Copper, DAX & More Gold Prices Rise Even as US Government Shutdown Ends Gold Awaits Dollar’s Lead Before Deciding Breakout or Reversal Oil Low High View More Note: Low and High figures are for the trading day. News Gold Prices Rise Even as US Government Shutdown Ends Weekly Technical Outlook- USD Warning Signs of Stretched Price Action Crude Oil Prices Struggle as Gold Eyes US Government Shutdown BITCOIN Low High View More Note: Low and High figures are for the trading day. News Bitcoin, Ethereum, Ripple; Technical Support Still Needed Bitcoin Shifts to a Mixed Trading Bias Bitcoin, Ethereum, Ripple Prices Crumble, Market Capitalization Slashed View More More Real-Time News Facebook Twitter Youtube Google + AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap by  David Song, Currency Analyst  Central bank policy, economic indicators, and market events. Connect via: FX Talking Points: - USD/JPY Weakness to Persist as Bearish Momentum Gathers Pace. - AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap. USD/JPY remains under pressure even as the Bank of Japan (BoJ) sticks to its easing-cycle, with the pair at risk for further losses as the bearish momentum appears to be gathering pace. Recent comments from Governor Haruhiko Kuroda suggest the BoJ is in no rush to wind down the Quantitative/Qualitative Easing (QQE) Program with Yield-Curve Control as the central bank pledges to expand the ‘monetary base until the year-on-year rate of increase in the observed CPI (all items less fresh food) exceeds 2 percent and stays above the target in a stable manner.’ With the BoJ still on autopilot, key developments coming out of the U.S. economy may influence dollar-yen ahead of the Federal Reserve’s interest rate decision on January 31 as the central bank appears to be on course to further normalize monetary policy over the coming months. Keep in mind, Fed Fund Futures remain little changed from earlier this month, with market participants still pricing a greater than 70% probability for a March rate-hike, and lackluster developments coming out of the U.S. economy may continue to anchor interest rate expectations as the central bank struggles to achieve the 2% target for inflation. In turn, downside targets remain on the radar for USD/JPY following the break of the descending triangle, with the pair at risk for further losses as the Relative Strength Index (RSI) continues to track the bearish formation carried over from the summer months. Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018. USD/JPY Daily Chart Interested in trading? Review the ‘ Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow. Keeping a close eye on the RSI as it approaches oversold territory, with a break below 30 raising the risk for a further decline in USD/JPY as the bearish momentum gathers pace. Near-term outlook remains capped by the 111.10 (61.8% expansion) to 111.60 (38.2% retracement) region , with a break of the monthly-low (110.19) opening up the next downside hurdle around 109.40 (50% retracement) to 110.00 (78.6% expansion). Next area of interest comes in around 108.30 (61.8% retracement) to 108.40 (100% expansion) followed by the 2017-low (107.32), which sits above the Fibonacci overlap around 106.70 (38.2% retracement) to 107.20 (61.8% retracement). The near-term advance in AUD/USD has started to show signs of exhaustion, with the string of failed attempts to test the 2017-high (0.8125) raising the risk for further losses as the Relative Strength Index (RSI) is on the cusp of flashing a textbook sell-signal. The key release for Australia comes next week as the region is scheduled to update the Consumer Price Index (CPI), but recent developments in the RSI casts a cautious outlook for AUD/USD as the momentum indicator snaps the bullish formation from December and appears to be coming off of overbought territory. The aussie-dollar exchange rate may highlight a similar dynamic as it comes up against trendline support, and AUD/USD may exhibit a more bearish behavior ahead of the Reserve Bank of Australia’s (RBA) February 6 meeting as the central bank is already expected to keep the cash rate at the record-low of 1.50%. AUD/USD Daily Chart Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups! The rebound from the December-low (0.7501) may start to unravel following the failed attempts to close above the 0.8030 (38.2% expansion) hurdle . Need a break of trendline support/10-Day SMA (0.7952) paired with a break/close below the 0.7930 (50% retracement) to 0.7940 (61.8% retracement) region to bring the downside targets back on the radar for AUD/USD. Will also keep a close eye on the RSI as it falls back from the highs, with a move below 70 raising the risk for a further decline in AUD/USD as it flashes a textbook sell-signal. Next downside region of interest comes in around 0.7850 (38.2% retracement) to 0.7860 (61.8% expansion) followed by the Fibonacci overlap around 0.7720 (23.6% retracement) to 0.7770 (61.8% expansion). Click Here for the DailyFX Calendar --- Written by David Song, Currency Analyst To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong. To be added to David's e-mail distribution list, please fol l ow this link . DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Related Articles Previous Articles From daily dollar Related Prev Articles   Traders Urged to Respond to Proposed European Rule Changes   Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting   AUD/USD Rally Approaching Initial Resistance Targets   USD & JPY Get Haven Bids as Trump Protectionism Returns   Gold Prices Rise Even as US Government Shutdown Ends   Subdued U.K. Wage Growth to Rattle GBP/USD Rate Rally   Oil Prices Risk Further Losses as RSI Slips from Overbought Territory   EUR/USD Initiates Bearish Sequence, RSI Flashes Textbook Sell Signal   EUR/USD Rally Fizzles as ECB Officials Dispute Euro Rate Strength   USD/JPY Risks Larger Rebound on Growing Bets for March Fed Rate-Hike Advertisement Upcoming Events Economic Event Importance Actual - Forecast - Previous Importance Actual - Forecast - Previous Forex Economic Calendar A:  Actual   F:  Forecast     P:  Previous NEWS Articles Real Time News Daily Briefings Forecasts DailyFX Authors TECHNICAL ANALYSIS Articles Analyst Picks Support & Resistance Pivot Points Sentiment CALENDAR Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar EDUCATION Forex Trading University Trading Guide DAILYFX PLUS RATES CHARTS RSS Past performance is no indication of future results. 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